NEW DELHI : Air India has approached its owners for about $1.5 billion in fresh equity, as the airline’s expensive turnaround programme continues to require more capital.
According to Reuters, the request has been made to Tata Sons and Singapore Airlines, which owns about 25% of Air India. Any fresh investment from Singapore Airlines would therefore be linked to its existing shareholding. The funding is expected to be provided in stages if the proposal goes through.
Air India’s request comes after a difficult financial year. Air India and Air India Express together reported a $2.33 billion loss for the financial year ended March 2026.
The combined loss was more than twice the previous year’s figure. The airline’s own loss stood at about ₹22,238 crore, making it the largest loss among Tata Group companies during the year. The airline is also dealing with older aircraft and legacy systems that require substantial investment.
Tata Sons had not increased its equity investment in Air India during the year ended March 2026. Its investment remained at around ₹22,618 crore, according to the group’s annual report.
The airline has also faced several external problems. The continuing restriction on Indian carriers using Pakistani airspace has forced longer international routes, increasing flying time and operating costs. Air India’s international network has also been affected by the conflict involving Iran and the wider disruption across the Middle East.
The airline was further hit by the crash of an Air India Boeing 787 near Ahmedabad last year, which killed 260 people and added another major challenge to its turnaround. Air India has been trying to reduce costs while continuing its fleet modernisation.The carrier has sought changes to the delivery schedule for hundreds of aircraft ordered from Airbus and Boeing.
Singapore Airlines has said it continues to work with Tata Sons on Air India’s transformation, but has not commented on the airline’s financial figures or the proposed funding. The proposed $1.5 billion would rank among the largest publicly reported shareholder funding requests since Tata Group took control of Air India.
The airline’s management has previously indicated that the transformation will take years. Tata Sons Chairman N Chandrasekaran has said the process could take as long as a decade.
Currently, the proposed funding remains under discussion.
Data: Reuters
